TREASURY
INSPECTOR GENERAL FOR TAX ADMINISTRATION

Office of Inspections and
Evaluations

Review of the Implementation of the Telework
Enhancement Act of 2010

July 11, 2013

Reference Number: 2013-IE-R006

This report has
cleared the Treasury Inspector General for Tax Administration (TIGTA) disclosure
review process and information determined to be restricted from public release
has
been redacted from this document.

SUBJECT: Final
Inspection Report – Review of the Implementation of the Telework Enhancement
Act of 2010 (# IE-13-004)

This report presents the results of our inspection to
determine whether the Internal Revenue Service (IRS) has taken appropriate
actions for compliance with the Telework Enhancement Act of 2010 (hereafter
referred to as the Act).[1]
We did not evaluate the effectiveness of the IRS Telework Program in this
review.

Synopsis

The President and Congress encourage increased participation
in telework by Federal agencies in order to ensure continuity of operations
during an emergency, reduce overhead, and improve employees’ ability to manage
their work life obligations. The IRS implemented most of the requirements of
the Act, establishing a telework policy that includes requirements for
eligibility, as well as employee and manager requirements for issues, such as
performance, training, and completing a written telework agreement. The IRS’s
Headquarters Continuity of Operations Plan recommends telework in appropriate
situations.

One purpose of telework is to ensure that Federal agencies
can continue to provide services when offices are closed due to inclement weather,
a pandemic, or an emergency; however, IRS teleworkers are required to telework
in an emergency only on their scheduled telework day(s). Management anticipates
negotiating with the National Treasury Employees Union to require teleworkers
to work from alternative locations on an unscheduled telework day(s) when the office
is closed due to an emergency. However, the IRS could implement this policy
for
non-bargaining unit employees without negotiations.

Also, while the IRS captures and reports some telework data,
it cannot provide the level of detail required by the Act due to some systems
limitations. The time and attendance system captures hours worked under the
Telework Program, but not in days. Also, it captures employees whose telework
type code is selected in the time and attendance system, but not the number of eligible
employees. According to the Telework Program Manager,[2]
the IRS is considering how to best meet the reporting requirements but changes to
the existing time reporting system may be cost prohibitive and must also be
negotiated with the National Treasury Employees Union.

Recommendations

We recommend that the IRS Human Capital Officer revise the
IRS’s telework policy to indicate that a non-bargaining unit employee with an
approved telework agreement can be expected to telework outside his or her normal
telework schedule in the case of an emergency situation. Additionally, the
Human Capital Officer should require that telework agreements include specific
language indicating whether or not the employee is expected to telework when
the office is closed due to an emergency.

Response

Management partially agreed with our recommendations to
require non-bargaining unit teleworkers to telework when the office is closed
due to emergency, and include emergency expectations for teleworkers in
telework agreements. To ensure that all IRS employees are treated
consistently, changes to telework requirements for bargaining unit employees
will be addressed with the National Treasury Employees Union in upcoming term
negotiations. Implementation for both bargaining and non-bargaining unit employees
will be contingent on the outcome of these negotiations.

Please
contact me at (202) 927-7048 if you have questions, or Kevin P. Riley, Director,
Office of Inspections and Evaluations, at (972) 249-8355.

Telework is a work flexibility arrangement under which an
employee performs the duties and responsibilities of his or her position from
an approved worksite other than the location from which the employee would
otherwise work. Telework does not include work in other Government offices,
taxpayer or customer sites, or training sites. Telework provides a number of
benefits including reduced energy consumption and traffic congestion, competitive
hiring and retention, cost savings such as real estate, and support for emergency
preparedness and continuity of operations. Telework also improves employee job
satisfaction and the ability to manage work life obligations.

Telework provides a number of benefits including reduced energy
consumption and traffic congestion, competitive hiring and retention, cost
savings, and support for emergency preparedness and continuity of operations.

The Telework Enhancement Act of 2010[3]
(hereafter referred to as the Act) expanded on telework legislation of 2000,[4]
which first required executive agencies to establish a policy under which
eligible employees may telework to the maximum extent possible without
diminished employee performance. The Act was designed to ensure a more
systematic implementation of telework in Federal agencies. According to the Office
of Personnel Management (OPM), satisfying the requirements of the Act has meant
a fundamental shift in how agency stakeholders view and implement telework—from
a strictly individual benefit to a strategic organizational change program. In
September 2012, 24 percent of all Internal Revenue Service (IRS) employees were
teleworking.

This inspection was performed at the IRS Headquarters in
Washington, D.C., in the Office of the Human Capital Officer, during the period
January through February 2013. We conducted this inspection in accordance with
the Council of the Inspectors General for Integrity and Efficiency Quality
Standards for Inspections. The inspection does not attempt to assess the
effectiveness of the IRS’s Telework Program; it is limited to determining the
IRS’s compliance with the applicable requirements of the Act. Detailed information
on our objective, scope, and methodology is presented in Appendix I. Major
contributors to the report are listed in Appendix II.

The IRS complied with the requirements included in the Act except
for a few areas due to financial or systemic limitations or requiring
additional negotiations with the National Treasury Employees Union (NTEU). We
have included a checklist of completed requirements in Appendix IV.

The IRS established a telework policy and notified
employees about eligibility to telework

Eligibility

The Act required agencies to:

Establish a policy under which eligible employees may be
authorized to telework;

Determine the eligibility for all employees to participate
in telework; and

Notify employees of their eligibility no later than June
8, 2011.

The IRS formalized its telework policy into the Internal
Revenue Manual[5]
6.800.2, Employee Benefits,IRS Telework (Flexiplace) Program. The
policy is also included in Article 50 of the 2012 National Agreement II
negotiated with the NTEU. The policy requires that three categories of
eligibility requirements must be met to enter into a telework arrangement:

Position;

Worksite; and

Employee.

Position – generally, all positions may be eligible for
some type of telework unless the employee is in a trainee or entry-level position,
or Privacy Act, security, or health safety concerns cannot be adequately
addressed. Additionally, employees cannot telework if they are in positions
that require:

Daily access to Personally Identifiable Information and
sensitive materials are needed and may not be removed from the official
worksite (duty station) or are not accessible by computer;

Regular face-to-face contact or other on-site activities
are needed to fill requirements of the position and cannot be adequately
achieved at a telework site;

Special facilities or equipment necessary to perform the
job cannot be made available; or

Duplication of security at an alternate site is too costly.

Worksite – it must be within a 125 mile radius of the
employee’s assigned IRS post of duty, unless an exception is approved, and
include the following provided by the employee:

A telephone;

High-speed internet or an air-card from an IRS-approved
provider if the work requires IRS network connectivity;

Note: Except where the IRS provides an air-card consistent
with the information technology profile of the employee, the cost of
these will not be paid by the IRS.[6]

Workspace suitable to perform work;

Utilities adequate for installing equipment; and

An environment that is free from interruptions and provides
reasonable security and protection for Government property and
information.

Employee – in order to telework, an employee must:

Work in a position with job duties and responsibilities
that can be effectively accomplished outside of the traditional office/team
setting;

For frequent telework,[7]
occupy a position outlined in Article 50 of the National Agreement II or
request consideration;

Have a current performance rating of at least “Fully
Successful” (or equivalent);

Perform at the journey level or full working level of the
position, or have worked in the position for more than two years,[9]
whichever is less;

Complete telework training;

Have an approved telework agreement;

Have not received any disciplinary/adverse actions in the
last 12 months that would impact the integrity of the Telework Program;

Have not been disciplined for being absent without
permission for more than five days (41 hours or more) in any one calendar
year and the record of discipline remains in the official personnel
folder; and

Never have been officially disciplined for viewing,
downloading, or exchanging pornography or child pornography on a Federal
Government computer or while performing official Federal Government
duties.

The IRS issued the notice of eligibility in a Service-wide
announcement via e-mail on June 2, 2011. The notice advised employees
that eligibility and program requirements were covered in National Agreement
II, Article 50, and in the Internal Revenue Manual 6.800.2, Employee
Benefits,IRS Telework (Flexiplace) Program. Managers were not
required to meet with employees to discuss eligibility, but were provided with
telework guidance prior to the announcement so they could answer questions from
employees on eligibility. An individual determination is made when an employee
requests to telework.

According to OPM’s 2012 report,[10]
the law did not specify the form that eligibility notification should take. A
“general, mass, or agency-wide e-mail” was the most frequently used method by
agencies.

Participation

The Act requires the telework policy to:

Ensure that telework does not diminish employee
performance or agency operations;

Require a written agreement that is mandatory in order for
any employee to participate in telework, and is between the manager and an
employee authorized to telework that outlines the specific agreed work
arrangement;

Provide that an employee may not be authorized to telework
if his or her performance does not comply with the terms of the written agreement;
and

Be incorporated as part of the Continuity of Operations
Plan (COOP)[11] of
the agency in the event of an emergency.

According to the Act, the policy does not apply to employees
whose official duties require (on a daily basis) the direct handling of secure
materials determined to be inappropriate for telework by the agency head or
on-site activity that cannot be handled remotely or at an alternative worksite.

The IRS’s telework policy requires that everyone who
participates in the IRS Telework Program must have a signed telework agreement.
Each employee and his or her manager must sign the telework agreement that specifies
the terms and conditions of the employee’s telework arrangement, such as work
location and days, timekeeping responsibilities, and safeguarding of Government
property and records, as well as performance requirements.

According to the IRS’s telework policy and telework
agreement, managers may temporarily suspend, modify, or terminate a telework
agreement any time an employee falls below minimum eligibility standards; is
issued a performance improvement plan, leave restriction letter, or intent to
deny a within-grade-increase; received any disciplinary action in the last 12
months that would impact the integrity of the Telework Program; or the
employee’s performance declines and the decline may be reasonably attributable
to telework.

The use of telework was incorporated in the IRS Headquarters
COOP, which, according to the Office of Continuity Operations, applies to all
business units and functions. The COOPs for the business units and functions
provide the details to implement the Headquarters Plan. The Office of
Continuity Operations will include references to the IRS telework policy in the
Headquarters Plan by May 2013. By adding references rather than specific
wording from the policy, the COOP will not become outdated when changes are
made to the policy.

Managers certify employee telework training and must treat
teleworkers the same as non-teleworkers

Training

The Act requires agencies to provide interactive telework
training for employees and their managers. Employees must complete the
training before they enter into a telework agreement. The Treasury Telework Program
policy, issued in April 2012,[12]
further required that the telework agreement include a certification of
completion of the training for the employee and employee’s supervisor. The IRS
requires employees and their managers to complete the interactive training provided
for each in the IRS’s Enterprise Learning Management System (training system) before
entering into a written telework agreement. IRS guidance originally encouraged
employees already teleworking to complete the training to familiarize
themselves with Telework Program changes; however, the requirement was
subsequently changed to require that all employees complete the training.

Managers verify that the employee completed training using
records maintained by the training system. The IRS revised the telework
agreement in November 2012 to include a certification by the employee and the
employee’s manager that the employee completed the telework training.

Consistent treatment of teleworkers and non-teleworkers

The Act requires that agencies ensure that teleworkers and
non-teleworkers are treated the same for:

The IRS telework policy requires that performance
expectations and standards for teleworkers are the same as expectations of work
which apply in the official worksite. Employees participating in telework
should have no higher performance expectations than those who are not
participating. The employees on telework are still held accountable for the rules
of conduct, performance standards, time and attendance, ethics, and all other
regulations applicable to their position. In accordance with OPM guidelines,
the IRS processes for managing the performance of all employees recommend:

·Planning work and setting expectations;

·Monitoring performance;

·Developing employee skills;

·Appraising performance; and

·Recognizing employees for their accomplishments.

The IRS telework policy complies with guidance developed
under requirements of the Act

The Act required the OPM and Office of Management and Budget
to develop guidance in areas affected under telework. The IRS incorporated
OPM’s guidance into its policy in the areas of:

Pay and leave;

Performance management;

Official worksite;

Recruitment and retention; and

Accommodations for employees with disabilities.

The IRS followed Office of Management and Budget guidance in
the areas of:

Security; and

Policy on purchasing computer equipment.

By signing the IRS telework agreement, the employee agrees to
comply with IRS policies and directives on security, privacy, and recordkeeping
measures. The telework policy outlines the responsibilities of the managers
and employees to comply with security and disclosure requirements, and to work
with the IRS Information Technology staff to ensure that equipment complies
with IRS policy on information systems and computer security.[13]

According to the National Agreement II, negotiated with the
NTEU, employees on frequent telework[14]
are eligible for the computer that was provided to them before being approved
for frequent telework, equipped with remote access software. Employees on
recurring[15]
or ad hoc[16]
telework are eligible for a loaner laptop to the extent available if not
already issued a laptop as part of their normal job duties.

The
IRS does not require teleworkers to work when the office is closed for an
emergency on unscheduled telework days

The IRS is working to incorporate OPM’s guidance on agency
closures. OPM emphasized that Federal offices will be closed when it is unsafe
for employees to commute; however, employees who can telework in the safety of
their homes generally should no longer be granted excused absence. In its
guide,[17]
the OPM explains that once an employee has an approved telework agreement, he
or she may be required to telework outside his or her normal telework schedule
in the case of a temporary emergency situation, if that understanding has been
clearly communicated by the agency in the written telework agreement. OPM
noted that appropriate collective bargaining obligations must be satisfied with
employee representatives on telework policies.

Additionally, the Treasury Telework Policy requires that
telework agreements include a statement that a teleworking employee is required
to telework from home or take unscheduled leave on days when the employee
normally would work on-site but is prevented from doing so by unforeseen conditions,
which include inclement weather or other declared emergencies. However, the
applicability of the Treasury Telework Policy is also subject to collective
bargaining.

At the time of this inspection, IRS employees under a
telework agreement have the option to telework in the case of inclement weather
or an emergency; however, teleworkers are only required to work if the
office is closed on their scheduled telework day(s). IRS management advised us
that they are currently negotiating with the NTEU to require teleworkers to
telework outside normal telework schedules in emergencies. However, the IRS
could require
non-bargaining unit employees to work, if this requirement is documented in their
telework agreements. Successfully implementing this requirement will enhance
the IRS’s ability to complete its mission in the event that Government offices
must be closed due to emergency.

Revise the IRS’s telework policy
to indicate that a non-bargaining unit employee with an approved telework
agreement can be expected to telework outside his or her normal telework
schedule in the case of an emergency situation.

Management’s Response:Management partially agreed with our
recommendation. The IRS will not implement any changes until telework
requirements for bargaining unit employees are addressed with the NTEU in
upcoming term negotiations. To ensure that all IRS employees are treated
consistently, implementation for both bargaining and
non-bargaining unit employees will be contingent on the outcome of those
negotiations.

Recommendation 2:

Require that telework agreements include
specific language on whether the employee is expected to telework when the
office is closed due to an emergency.

Management’s Response:Management partially agreed with our
recommendation. The IRS will not implement any changes until telework
requirements for bargaining unit employees are addressed with the NTEU in
upcoming term negotiations. To ensure that all IRS employees are treated
consistently, implementation for both bargaining and
non-bargaining unit employees will be contingent on the outcome of those
negotiations.

The IRS cannot meet all the Act’s reporting requirements
due to some system limitations

The Act requires the OPM, in conjunction with the Chief
Human Capital Officers Council, to report annually on the Telework Program of
executive agencies. In addition to other reporting requirements, the IRS must
report to the Department of the Treasury:

The total number of employees;

The number of employees eligible to telework;

·The number of employees teleworking

othree or more days per pay period,

oone or two days per pay period,

oonce per month, and

oon an occasional, episodic, or short-term basis;

·If the total number of employees teleworking is 10 percent higher
or lower than the previous year, the reasons; and

·The goals for the percentage of eligible employees to telework
next year.

The IRS uses its time and attendance system to capture
telework data reported to the Department of the Treasury for inclusion in the
OPM report. The system includes a field for employees with an approved
telework agreement to indicate whether they are approved for frequent,
recurring, or ad-hoc telework. The IRS cannot readily report the degree of
telework participation in accordance with OPM requirements because the system
does not capture eligibility and does not capture telework in days.

The IRS reports the number of employees eligible to telework
based on the number of employees whose telework type is selected in the time
and attendance system. However, this method does not count the employees who
are eligible to telework but do not have telework agreements.

In order to report the number of employees who worked one,
two, or three or more days per pay period, the IRS must convert the hours reported
under telework to days by counting eight hours as one day. The system cannot
capture the number of employees who worked once per month or occasionally,
episodic, or on a short-term basis. According to the Telework Program Manager,
the IRS is exploring options to comply with reporting requirements, but the
cost may be prohibitive. Changes must also be negotiated with the NTEU.

The percentage of all IRS employees teleworking increased
from 20 percent (almost 21,000) of all employees in September 2011 to 24
percent (almost 24,000) of all employees in September 2012, an increase of
20 percent. IRS management attributes the increase to increased marketing and
acceptability. Those responsible for the IRS Telework Program worked with the
business units to educate them on how telework is advantageous to the
Government.

Figure 1: Number of IRS
Employees Teleworking

The figure was removed due to its size. To see the figure,
please go to the Adobe PDF version of the report on the TIGTA Public Web Page.

Although participation goals are required for each frequency
category—one, two, or three or more days per pay period—the IRS cannot report
goals in this detail because the time and attendance system does not provide
the ability to capture this information accurately. Instead, Program
management set a Fiscal Year 2013 goal for 24 percent of all IRS employees to
participate in the Telework Program, up from the goal of 22 percent in Fiscal Year
2012.

The Act requires agencies to report participation goals
based on the percentage of eligible employees. However, the IRS’s 24 percent participation
goal for Fiscal Year 2013 is based on the percentage of total employees who are
teleworking. Nevertheless, the numbers from year to year provide a valid
comparison from which to measure improvement.

The objective of this review was to determine whether the
IRS has taken appropriate action for compliance with Pub. L. No. 111-292, Telework
Enhancement Act of 2010. We did not evaluate the effectiveness of the IRS
Telework Program in this review.

We did not include a review of the information and security protections
over information and information systems required by the Act. The Treasury Inspector
General for Tax Administration’s Security and Information Technology Services
audit group reviews the IRS’s Information Systems Security.

To accomplish the objective,
we:

I.Reviewed guidance recently
issued regarding telework.

A.Reviewed Pub. L. No. 111-292,
Telework Enhancement Act of 2010.

B.Reviewed OPM guidance.

C.Reviewed the Treasury Telework
Policy[18] and any other telework guidance and policies of
the Department of the Treasury.

II.Determined what actions the
IRS has taken regarding telework, and what remains to be addressed.

If the number of employees teleworking is 10
percent higher or lower than the previous year, the reasons for the variation;

Y

The agency goal for increasing participation to the
extent practicable or necessary for the next reporting period, as indicated
by the percentage of eligible employees teleworking in each frequency
category; and

[5]
The Internal Revenue Manual is the IRS’s primary source of instructions to its
employees relating to the administration and operation of the IRS. The manual
contains the directions employees need to carry out their operational
responsibilities.

[6]
In June 2010, the IRS and NTEU signed a Memorandum of Understanding that
created standard information technology equipment profiles for each occupation
in the IRS. The intent was so that employees in the same jobs received the
same equipment.

[7]
Frequent telework includes regular and recurring duties that may be performed
at the approved telework site for more than 80 hours each month.

[8]
The manager may shorten the one-year service requirement on a case-by-case
basis. A decision not to shorten the time frame is not grievable except for
alleged discrimination.

[9]
The manager may shorten the two-year time frame on a case-by-case basis. A
decision not to shorten the time frame is not grievable except for alleged
discrimination.

[10]2012 Status of Telework in the Federal Government, Report to Congress
(June 2012).

[11]
A COOP establishes procedures to ensure the continued operation of functions in
the event of an emergency.

[13]
We did not include a review of information and information systems in this
inspection. The Treasury Inspector General for Tax Administration’s Security
and Information Technology Services audit group reviews IRS information
systems’ security.

[14]
Frequent telework includes regular and recurring duties that may be performed
at the approved telework site for more than 80 hours each month.

[15]
Recurring telework includes recurring work assignments performed at the
approved telework site for 80 hours or less per month.

[16]
Ad hoc telework involves non-recurring projects or occasional work assignments
that may be performed at the approved telework site.

[19]
Determinations were not made on an individual basis regarding notices of
eligibility. However, broad determinations were made for occupations as to
eligibility for telework types. Final determinations are made on an individual
basis.

[20]
An e-mail was issued notifying employees that the policy for eligibility was in
the Internal Revenue Manual and National Agreement II. However, some employees
have limited access to e-mail (must go to a business center or kiosk), and
managers were not required to discuss eligibility with employees. Managers
were provided with guidance so they could answer questions on eligibility.

[21]
The Office of Continuity Operations plans to add references to the telework
policy in the COOP by May 2013.

[22]
The OPM and the Department of the Treasury guidance recognize that further
changes in this area require negotiation with NTEU for bargaining unit
employees, which the IRS has already begun. However, the IRS could implement
guidance issued by the OPM and the Department of the Treasury for
non-bargaining unit employees.

[23]
The IRS policy outlines the responsibilities of the managers and employees to
comply with security and disclosure requirements; however, we did not include a
review of information and information systems in this inspection. The Treasury
Inspector General for Tax Administration’s Security and Information Technology
Services audit group reviews IRS information system’s security.

[24]
The IRS established a policy for creating standard technology equipment
portfolios for each occupation prior to passage of the Act; however, the
National Agreement II describes equipment to be provided for telework.

[25]
The number of employees eligible to telework is represented by the number of
employees whose telework type is selected in the time and attendance system.

[26]
The IRS’s time and attendance system does not capture telework by days. This
is computed by assuming that every eight hours teleworked was one day. Also,
the IRS uses an estimate of the number eligible because the percentage of
eligible employees cannot be accurately determined.

[27]
The IRS set a participation rate goal for Fiscal Year 2013 but not by frequency
category and not as a percentage of eligible employees. Instead, the goal is
that 24 percent of all employees telework. The time and attendance system does
not allow them to track more precise details.